CCEA approves new formula to pay production subsidy to sugar mills

Posted on:05 Aug 2016 09:39:08
CCEA approves new formula to pay production subsidy to sugar mills
05 August 2016 Current Affairs: The Cabinet Committee on Economic Affairs (CCEA) today approved a new formula to calculate production subsidy to sugar mills for the ongoing 2015-16 season after taking into account lower sugar production and exports.

To address liquidity stress in the sugar industry and facilitate timely payment of cane arrears, the Centre last year had announced a subsidy of Rs 4.50 per quintal of cane crushed during October 2015-September 2016 season with a condition that mills meet the export quota of four million tonnes and ethanol blending target.

The CCEA has approved the revised formula to determine the production subsidy to sugar mills for 2015-16 season taking into account lower cane crushing, sugar production and exports in view of drought in parts of Maharasthra and Karnataka.

The CCEA has approved the revision in the export quota and ethanol supply target for calculating the production subsidy.

This has been done to offset cost of cane and facilitate timely payment of cane price dues of farmers.

With the revised formula, the production subsidy outgo to sugar mills would come down to Rs 600 crore as against previously estimated Rs 1,147.5 crore, sources said. As the production subsidy scheme was withdrawn before time, sugar mills which have exported at least 50 per cent their export target and in case of mills having distillation capacity have supplied ethanol as per revised schedule would be eligible for production subsidy

The production subsidy was initially calculated based on the estimated cane crushing of 255 million tonnes in the 2015-16. But the cane crushing has come down due to drought. Consequently, sugar output is also estimated to be lower at 25.2 million tonnes this season. 

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs PDF

Current Affairs November 2017

18 NOVEMBER
NEWS
17 NOVEMBER
NEWS
16 NOVEMBER
NEWS

Current Affairs October 2017

31 OCTOBER
NEWS
30 OCTOBER
NEWS
29 OCTOBER
NEWS
28 OCTOBER
NEWS

Current Affairs September 2017

30 SEPTEMBER
NEWS
28 SEPTEMBER
NEWS
27 SEPTEMBER
NEWS
26 SEPTEMBER
NEWS